CTG press release: 12/03/08
CTG welcomes transitional relief
The Charity Tax Group today wholeheartedly welcomed the Chancellor’s decision to continue to pay Gift Aid claims at a transitional rate of 22% for the next three years. Alistair Darling’s bold decision will save the charity sector £100 million a year for three years.
The Charity Tax Group had led the campaign to draw attention to the potentially devastating impact on charities of the 2p cut in the basic rate of income tax from April 2008.
UK charities will now be able to use the £300 million to further their charitable objectives. The relief is worth £6m to Oxfam, £10m to Cancer Research UK, £7.5m to the National Trust and £24m to the Church of England.
Helen Donoghue, CTG’s Director, said:
The Charity Tax Group had led the campaign to draw attention to the potentially devastating impact on charities of the 2p cut in the basic rate of income tax from April 2008.
UK charities will now be able to use the £300 million to further their charitable objectives. The relief is worth £6m to Oxfam, £10m to Cancer Research UK, £7.5m to the National Trust and £24m to the Church of England.
Helen Donoghue, CTG’s Director, said:
“We are delighted that the Chancellor has recognised the importance of supporting large and small charities in this positive way. This transitional relief gives the Government sufficient time to look at the Gift Aid system as a whole and the positive proposals put forward by the sector to simplify and modernise this important relief and improve take-up of it.”CTG also welcomes the announcement to repeal the outdated bondwashing legislation, which the Treasury says will save the charity sector £400,000 a year in administrative costs.